SHORT CALL LADDER	STRAP
About Strategy	Short Call Ladder Option Strategy  This strategy is implemented when a trader is moderately bullish on the market, and volatility. It involves sale of an ITM Call Option, buying of an ATM Call Option & OTM Call Option. The risk associated with the strategy is limited. Risk: Read more..	Strap Option Strategy  Strap Strategy is similar to Long Straddle, the only difference is the quantity traded. A trader will buy two Call Options and one Put Options. In this strategy, a trader is very bullish on the market and volatility on upside but wants to hedge himself in case the stock doesn’t perform as per his expectations. This strategy will make more profits compared to long straddle sin .. Read more..

SHORT CALL LADDER Vs STRAP - Details

	SHORT CALL LADDER	STRAP
Market View	Neutral	Neutral
Type (CE/PE)	CE (Call Option)	CE (Call Option) + PE (Put Option)
Number Of Positions	3	3
Strategy Level	Advance	Beginners
Reward Profile	Unlimited	Profit Achieved When Price of Underlying > Strike Price of Calls/Puts + (Net Premium Paid/2) OR Price of Underlying < Strike Price of Calls/Puts - Net Premium Paid
Risk Profile	Limited	Max Loss Occurs When Price of Underlying = Strike Price of Calls/Puts
Breakeven Point	Upper Breakeven Point = Total Strike Prices of Long Calls - Strike Price of Short Call + Net Premium Received Lower Breakeven Point = Strike Price of Short Call - Net Premium Received	Strike Price of Calls/Puts + (Net Premium Paid/2)

SHORT CALL LADDER Vs STRAP - When & How to use ?

	SHORT CALL LADDER	STRAP
Market View	Neutral	Neutral
When to use?	This strategy is implemented when a trader is moderately bullish on the market, and volatility	This strategy is used when the investor is bullish on the stock and expects volatility in the near future.
Action	Sell 1 ITM Call, Buy 1 ATM Call, Buy 1 OTM Call	Buy 2 ATM Call Option, Buy 1 ATM Put Option
Breakeven Point	Upper Breakeven Point = Total Strike Prices of Long Calls - Strike Price of Short Call + Net Premium Received Lower Breakeven Point = Strike Price of Short Call - Net Premium Received	Strike Price of Calls/Puts + (Net Premium Paid/2)

SHORT CALL LADDER Vs STRAP - Risk & Reward

	SHORT CALL LADDER	STRAP
Maximum Profit Scenario	Profit Achieved When Price of Underlying > Total Strike Prices of Long Calls - Strike Price of Short Call + Net Premium Received	UNLIMITED
Maximum Loss Scenario	Strike Price of Lower Strike Long Call - Strike Price of Short Call - Net Premium Received + Commissions Paid	Net Premium Paid
Risk	Limited	Limited
Reward	Unlimited	Unlimited

SHORT CALL LADDER Vs STRAP - Strategy Pros & Cons

	SHORT CALL LADDER	STRAP
Similar Strategies	Short Put Ladder, Strip, Strap	Strip, Short Put Ladder, Short Call Ladder
Disadvantage	• Unlimited risk. • Margin required.	• To generate profit, there should be significant change in share price. • Expensive strategy.
Advantages	• Higher probability of profit. • Unlimited upside profit. • Limited maximum loss.	• Limited loss. • If share prices are moving then traders can book unlimited profit. • A trader can still book profit if the underlying falls substantially.